News 2: (+) CSR Affordable housing from Microsoft $500 millions in Seattle Purdue : Oxycontin not to tell Doctors how powerful Oxycontin The stronger the dosage the more people die & the more revenue they got in

Allan Murray - Management Chapter 1 Manager : someone who organizes a group of people to accomplish a goal Winslow Taylor: founder of management (Classic Management) 1911 : Taylor classic work was published -Management : standing in a workplace with a stopwatch, measuring each action taken by the workers, and devising ways to eliminate all false and slow movements” -The goal : organizing factories & workplace -Management: Planning, organizing, directing, monitoring Peter Drucker : founder of Modern Management. -1955 - Knowledge Worker: people whose work primarily involves manipulation of information and knowledge rather than manual labor. => couldn’t be measured or control -The Essential Drucker published in 2001 -Management: + motivating talented knowledge => Set objectives, organizes, motivates & communicates, measures, and develops people. -Good manager = good leader of people In the past manager only OVERSAW Past Manager vs Modern Manager: -Classic management: Controller => but now as Enabler -In charged of accomplishing task : Supervisor => Leader -Conflict / Competition in the relationships => Collaboration in relationships among workers -Expected to always lead in Autocratic (make the decision alone) ex: Donald Trump => expected to Empower ex: Obama -Maintaining stability (keep everything the same) => Changes is good How do managers differ : -Administers -Focus on systems and structure -Relies on control -Has short-range view -Ask how, whe, what, and why => challenge the status quo when necessary. Nowadays, decision making is not only concentrated in the top of the pyramid but to MIDDLE MANAGERS

-Pay = only income -Bring together under 1 management => lower transactional cost Profitability of Brands: -Suppliers and manufacturers have market power because they have the info and customer does not and cannot have -One technology pertains one and only industry Ex: Need to make steel => steel industry => need industrial research lab Assumption => turn upside down -Production = knowledge. Knowledge worker : provide capital => associate / partner -More part time people & outsourcing -Limits to the important of transactional costs .Everyone is trying to highly specialize in certain technology -Maximum integration is no longer needed => communication cost have come down so fast => cause growth & spread of business literacy -New information technology (internet & email) => cut down physical cost communication. -Workers => outsourced to professional handles the employee issues. Condition now: -Customers now has access to information. Whoever has the information = power -GM is still the largest manufacturer and most successful selling organization. -Unique technology with the help of research lab Druckers: -Major changes corps have seen in recent years -Everyone is trying to highly specialize in certain technology -Compares ford to Facebook : Facebook has knowledge workers -More part time & outsourcing -Prev suppliers had more market power but now with internet customer has more info and power -Businesses now go to investors & hedge funds instead of banks -Corp will survive as long as they adopt to people needs Case of Toys R Us : -Failed because it didn’t change -Failed to keep up & address the shifting economies of retail industry -Physical retailers didn’t die because more companies start to do innovation : do something that can’t be done online. Ex: Apple (offer service, relationship building, etc) These days transactions can be done everywhere without having to come to the store because of technology.

Critiques on Airline Industry: -Wrong about new entrants : not that easy anymore as airline industry had been de-regulated -Bargaining power: customers had NO bargaining power (fix-price) -Suppliers (airports) had control for the gates -Threat competition: depends not much threat -Rivalry of competitors : not enough competition Article of Green & Competitive : Economy vs Ecology => environmental friendly, cost less & higher benefits => creation of innovations Innovation needs REGULATON : -Companies had to invent new ways to make it in the production => close loop in which they have to change the process => have a control (at the end) -Change the process : no pollution / less pollution => no control Why do regulation? 1. Creates pressure to innovate 2. Improve environmental quality 3. Alert and educate companies about likely resource inefficiencies and potential areas for technological improvement 4. Raise the likelihood that product innovations and process innovations in general will be environmental friendly 5. Create demand for environmental improvement 6. Level the playing field during the transition period to innovation-based environmental Blue Ocean Strategy : creating a strategy that did not exist before. In the pursuit of differentiation and lower cost => create new market space and demand by creating and capturing uncontested market space Used to be Blue Ocean : -Southwest -FedEx -Home Depot -CNN Usually blue ocean lasts for 10-15 years without competition Example in the article : Cirque Circus: innovation combining circus + theatre+ gymanstics+ dance+music Red Ocean : -Retail -Fast Food -Telephone Lego case: -Classified as blue ocean strategy -Red : if its in Toy industry -They change the time : innovation

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